Exemption of payment of contributions for young people


Pursuant to the Contributions Act (Official Gazette, 84/08, 152/08, 94/09, 18/11, 22/12, 144/12, 148/13, 41/14, 143/14, 115/16, 106 / 18, hereinafter: the Act) an employer who concludes an employment contract with a young person for an indefinite period of time for a period of up to five years is obliged to calculate only the contributions from the base rate, as follows:

  1. Pension insurance contribution at a rate of 20%, or at a rate of 15% for a pension insurance policyholder based on individual capitalized savings,
  2. Contribution for pension insurance based on individual capitalized savings (for the insured person) at the rate of 5%,

that is, in the specified period of up to 5 years, there will be no obligation to do payroll for and pay contributions on a base basis, as follows:

  1. Health insurance contribution at the rate of 16.5%.

A young person is a natural person:

  1. whom the employer on the basis of the employment contract concluded for an indefinite period registers for the mandatory pension insurance and mandatory health insurance, and
  2. whom to the date of commencement of insurance is less than 30 years of age, and
  3. whom up to the date of employment agreements had no previous employment contract of indefinite duration with the same employer.

The following conditions are essential:

  1. The employment contract is concluded with a person no older than 30 years of age,
  2. The employment contract must be concluded for an indefinite period of time, and
  3. The young person not older than 30 years of age has not previously had an open-ended employment contract with the same employer.

Competent institution:
Ministry of Finance
Tax Administration
Phone: +385 1 4809 000